Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 19

On January 15, 2015, Sports World sold 1,000 Ace-5 fishing reels to Angler's Warehouse.mmediately prior to this sale, Sports World perpetual inventory records for Ace-5 reels included the following cost layers:

Instructions
Note: We present this problem in the normal sequence of the accounting cycle-that is, journal entries before ledger entries.owever, you may find it helpful to work part b first.
a.repare a separate journal entry to record the cost of goods sold relating to the January 15 sale of 1,000 Ace-5 reels, assuming that Sports World uses:
1.pecific identification (500 of the units sold were purchased on December 12, and the remaining 500 were purchased on January 9).
2.verage cost.
3.IFO.
4.IFO.
b.omplete a subsidiary ledger record for Ace-5 reels using each of the four inventory valuation methods listed above.our inventory records should show both purchases of this product, the sale on January 15, and the balance on hand at December 12, January 9, and January 15.se the formats for inventory subsidiary records illustrated on pages 345-347 of this chapter.
c.efer to the cost of goods sold figures computed in part a.or financial reporting purposes, can the company use the valuation method that resulted in the lowest cost of goods sold if, for tax purposes, it used the method that resulted in the highest cost of goods sold Explain.
Problems 8.2A and 8.3A are based on the following data:
Speed World Cycles sells high-performance motorcycles and motocross racers.ne of Speed World's most popular models is the Kazomma 900 dirt bike.uring the current year, Speed World Cycles purchased eight of these bikes at the following costs:

On July 28, Speed World Cycles sold four Kazomma 900 dirt bikes to the Vince Wilson racing team.he remaining four bikes remained in inventory at September 30, the end of Speed World's fiscal year.